Learn More About Consumer Rights and Lending Laws

Consumers in the modern world are surrounded by countless advertisements, contract offers, and other deals.

In the face of sophisticated and powerful companies, it can be confusing to navigate the complex laws concerning consumer rights.

However, all consumers should know they are entitled to protection, particularly when it comes to debt and lending laws.

If you or a loved one need help navigating the complex consumer protection laws contact the experienced attorneys at McDonald Worley for a FREE case evaluation. 

Lender Liability

Lenders are required to follow state and federal regulations when it comes to making and collecting on a loan. Consumer rights include notification of terms of the loan as well as any changes. Additionally, lenders must go about collecting debts in line with laws that cover when and how collection is made and prohibitions on abusive debt collection practices.

Lenders can become liable if they violated consumer protection laws when making or collecting on a debt. They can become liable for breach of contract, as well as for violations of federal laws, including the Real Estate Settlement Procedures Act and Truth in Lending Act. They can be subject to fines and attorney fees if they are found to violate these laws. Foreclosure proceedings can also be stalled or even stopped if lenders are found to violate these laws.

Bankruptcy

Bankruptcy is a way for consumers and businesses who have gotten in over their heads to start fresh and is an important consumer right. Generally, with the help of an attorney, consumers can ask a bankruptcy court to reorganize and discharge their debts. There are several different types of bankruptcy depending on the situation. Each has their own set of rules and procedures.

While bankruptcy is not ideal, it can give an honest consumer who has had bad luck, perhaps in the form of unexpected medical bills, foreclosures, and similar situations to get a clean slate after all other options have failed.

Foreclosure Defense

After the foreclosure crisis during the Great Recession, tough federal laws were enacted that strengthened consumer rights, including the Real Estate Procedures Act and the Truth in Lending Act. Additionally, consumers have successfully fought foreclosure by showing that the bank or mortgage company violated the terms of their contract.

In addition to potentially saving their home from foreclosure, consumers who successfully show that their bank or mortgage company violated their consumer rights can also be entitled to recover fines of up to $4,000 along with attorney’s fees.

Creditor Abuse

Creditor abuse is a violation of consumer rights. It can include a wide range of debt collection activities, including harassing phone calls, letters, payday loan abuse, and credit report errors. Debt collectors and lenders are subject to a number of laws that prohibit abusive activities.

For example, debt collectors cannot contact consumers too early or too late at night and also cannot contact their place of employment. They must also identify themselves and cannot use abusive or profane language. Additionally, consumers have the right to demand creditors stop contacting them.

Approximately 80 million Americans have a debt in collection. If you are facing creditor abuse or troubling debt collection activities, you should know that you have consumer rights protecting you.

If you or a loved one need help navigating the complex consumer protection laws contact the experienced attorneys at McDonald Worley for a FREE case evaluation.